KUALA LUMPUR: Ewein Bhd, which is developing its first property project valued at RM800 million at Bandar Tanjong Pinang, Penang in a joint venture (JV) with Consortium Zenith BUCG Sdn Bhd (CZBUCG), is looking to bad the next parcel of land the latter will be offering for development there.

It expects the next project to be up for grabs in the second half of this year.

"We are now working closely with CZBUCG to explore the potential [developmen] of the next parcel of land measuring 4.29 acres (1.73ha). It will also require the approval of the Penang Island City Council on the planning permission for the proposed development," Ewein managing director Datuk Ewe Swee Kheng told The Edge Financial Daily in an interview last week.

He declined to reveal the details, but that it is likely to be another high-rise residential development.

It is understood that the second project will have a gross development value (GDV) of RM1 billion.

On March 31, 2015, Ewein (fundamental: 1.1; valuation: 1.4), through Ewein Zenith Sdn Bhd, a 60:40 JV between Ewein and CZBUCG, received planning permission from the penang island city council to develop luxury serviced apartment on a 3.67-acre piece of freehold land in Bandar Tanjong Pinang.

Dubbed "City of Dreams", the project features two blocks of 38-storey towers housing a total 572 units, with built-ups ranging from 1,100 sq ft to 2,350 sq ft.

Ewe said the sea-fronting serviced apartment will be priced from RM1,200 per sq ft, which is relatively lower than Eastern & Oriental Bhd’s high-end condominiums at Seri Tanjong Pinang nearby which are going for RM1,800 per sq ft.

Ewe pointed out that while Ewein Zenith was chosen to develop the City of Dreams project, it is not guaranteed that it will be the chosen developer to undertake the remaining parcels of land in Bandar Tanjong Pinang.

'Of course, we (Ewein) have high hopes to being chosen because of our current relationship with CZBUCG. That's why we must ensure that our first project (City of Dreams) is successful. If we do the project well, there is no reason why the relationship cannot continue," he said.

Bandar Tanjong Pinang entials 110 acres of reclaimed land in Tanjong Pinang that was given to CZBUCG by the Penang state government as compensation-in-kind for the building of the RM6.3 billion Penang Undersea Tunnel, which includes three road bypasses.

Lee said Bandar Tanjong Pinang is estimated to have a GDV of RM25 billion over the next 10 years.

According to Ewe, Bandar Tanjong Pinang will comprose a combination of residential and commercial perperties, but the proportion will depend on prevailing property market conditions.

"We have a masterplan [for Bandar Tanjong Pinang], but it is subject to change according to market conditions," he added.

Ewein, which is deversifying its revenue stream from manufacturing of precision sheet metal fabricated parts to include property development, expects moderate growth for the current financial year ending Dec 31, 2014 (FY15) as the sluggish demand from the electronics and electrical sector continues.

The group saw net profit for FY14 grow 110.3% to RM 3.46 million from RM1.65 million in FY13 on higher contribution from its investment holding activities.

However, revenue fell 14.2% to RM44.63 million from RM51.99 million due to a slowdown in orders caused by lower demand for home appliances electronics.

Ewe said the group expects “exciting times” come FY16 as earnings contribution from its property development starts rolling in.

Ewein Zenith will launch the City Of Dreams project in the middle of this year, with construction work to begin in the second half and completion within 48 months.

"We expect revenue contribution from the property development segment to outpace all other segment from FY16," said Ewe.

He sees Ewein Zenith reaping RM200 million in gross profit from the City Of Dreams project over four years starting from 2016.

"The land cost [for the 3.67-acre parcel] was RM133 million, while the total development cost is estimated to be more than RM400 million," he said.

In a filling with Bursa Malaysia yesterday, Ewein said that it was expected to start in the second half of this year.

Yesterday, the Penang Island City Council approved he building plans for the development on the parcel of land alienated to Ewein Zenith, a 60:40 joint venture between Ewein and Consortium Zenith.

The parcel forms part of the 110 acres of freehold land to be alienated by the Penang government to Consortium Zenith or its nominees as partial payment for construction works on the RM6.3bil mega project which includes a 6.5km undersea tunnel. Consortium Zenith is also allowed to collect toll for the undersea tunnel for 30 years.

Ewein did not reveal the specifics of the proposed development in its announcement yesterday, but it did mention broadly in a circular to shareholder dated June 12, 2014, that the development would be a combination of residential and commercial units.

Ewein Bhd, via unit Ewein Land, will pay RM79.8mil to Consortium Zenith for the 3.67acre land that has been valued at RM133mil (equivalent to 60% of the land value).

This marks the first property development project undertaken by Ewein, whose core business is precision and fabricated sheet metal manufacturing.

On the rationale for the diversification, Ewein said it was to mitigate any risk of dependency in its core business that fell within the electronics industry, "a competitive and rapidly evolving industry.":

The company said its proposed joint venture with Consortium Zenith was expected to result in a diversion of more than 25% of the net asset of the group to the property development business.
According to the circular, the group envisaged that profit would be shared in accordance to the respective shareholding percentages of Ewein Land and Consortium Zenith in Ewein Zenith.

Consortium Zenith was awarded the feasibility studies and detailed design works for Penang’s largest infrastructure project following an agreement inked with the Penang government in October 2013. The project comprises a RM6.3mil integrated road transport and traffic mitigation project comprising 6.5km undersea tunnel, a 4.2km bypass from Gurney Drive to Tun Dr. Lim Chong Eu Expressway and Bandar Baru Air Itam, and a four-lane 12km road from Jalan Tanjung Bungah to Teluk Bahang.

KUALA LUMPUR (February 7): KUALA LUMPUR: Consortium Zenith BUCG Sdn Bhd has been granted some nine acres of land (3.64ha) on Seri Tanjung Pinang 1 (STP1), worth RM305 million, by the Penang government to finance the cost of the initial feasibility studies and detailed design (FSDD) works in the RM6.3 billion Penang undersea tunnel project.

Originally,the company was to get 110 acres for Seri Tanjung Pinang 2 (STP2) from the state government, plus a toll concession on the undersea tunnel, to fund the entire project. However, there has been a delay in the progress of STP2, which is to be reclaimed by developer Eastern & Oriental Bhd (E&O).

"We have spoken to E&O and they believe that the STP2 land will only be available two years from now. Thus, the state government is giving us nine acres on STP1 first," said Consortium Zenith's chairman Datuk Zarul Ahmad Zulkifli in a recent interview with The Edge Financial Daily.

He added that this is only a minor tweak to the original funding structure, as the company will still get about 100 acres for STP2, after the nine acres on STP1 were deducted from the amount.

According to Zarul, the nine acres on STP1 are worth about RM305 million, sufficient to finance the cost of the initial FSDD works for the mega-infrastructure project. The remaining RM6 billion is the estimated cost of construction, to build new roads and tunnels on Penang island, as well as the 6.5km undersea tunnel linking George Town and Butterworth which is the main component.

The RM305 million FSDD stage has been broken down into four phases. At each phase the consortium will inject 10% from its own money to fund the costs.

The first tranche of the FSDD will cost RM79 million, meaning Consortium Zenith will have to inject RM7.9 million from its own money. The capital injection was finalised last week, while the second tranche will be due in July and will require another round of capital injection of RM9.4 million (see chart for full timeline).

"For now we have no debts," Zarul said when asked how Consortium Zenith will finance the capital injection. "We will only start borrowing during the construction stage.".

The bulk of the RM305 million will be spent on the detailed design (DD) portion of the work - which is about 60% or RM180 million. Some 30%, or RM91.5 million, will go toward the feasibility studies (FS) while the remaining 10%, or RM30.5 million, will be used for the detailed environmental impact assessment (DEIA).

The FS is currently underway and Consortium Zenith expects to complete it in April. This is two months ahead of the expected completion in June.

"Once we have completed the FS we will present it to the state government that will have to endorse it. Only then do we call in the design team. The DD takes a long time and could easily take a year," said Zarul.

Consortium Zenith will then submit the DEIA which could take nine months to a year for approval.

At best, the consortium hopes to be able to begin construction on the major roads on the Penang Island at end-2015 or early-2016, said Zarul.

The first to be constructed will be a 12km dual carriageway from Tanjong Bungah to Teluk Bahang, followed by a 5km road and tunnel from Lebuhraya Tun Dr Lim Chong Eu to Ayer Itam, then a 4.2km road and tunnel from Lebuhraya Tun Dr. Lim Chong Eu to Persiaran Gurney Highway. The final phase will be the 7.2km George Town-Butterworth link of which 6.5km will be the undersea tunnel.

"For the RM305 million FSDD works, the state government has identified two parcels of land in STP1 for us," Zarul said.

"We are getting developers to come in and forward purchase [the STP1 land for us]. So what we are effectively doing is getting the developers to fund us (in the FSDD phase)," he added.

On Dec 24, Consortium Zenith entered into a joint venture (JV) agreement with Ewein Bhda's wholly-owned unit Ewein Land Sdn Bhd to develop the first 3.73-acre parcel of land on STP1.

"It is a 60:40 JV, so we will have to come out with 40% of the cash. For the first parcel, that is RM53.2 million on our part," said Zarul. This is based on the estimated value of the land at RM133 million.

The JV has proposed to undertake a mixed development on the seafront lot in Tanjong Tokong. The development will include high-end residential products, according to Zarul.

"The gross development value will range between RM700 million to RM1 billion for the 3.73-acre plot of land," Zarul said.

"We are providing a lot of comforts - dedicated lifts, accidents and emergency facilities, sky bar and limousine service among other things. We want to give five-star hotel service to the residents. In fact we are talking to a hotel operator to manage the project for us later on."

Consortium Zenith has yet to select a developer for the second 5.7 acre parcel on STP1, although it has already received proposals from a few developers.

The construction of the major roads and tunnels on Penang island, and part of the undersea tunnel is to be funded by the 100-odd acres Consortium Zenith is to receive on STP2. The undersea tunnel is also expected to be majority finance by the issuance of bonds backed by future toll revenue.

"We have already arranged to set up a Penang Real Estate Fund. This will be the anchor in which we have a host of local and international developers who will contribute funds for the development of the 100 acres," said Zarul.

According to him, instead of awarding smaller parcels to individual developers, the participating developers will collectively oversee its development.

"The fund will be managed by a local bank, which will disburse the money according to schedule," said Zarul.

"We should be able to complete the feasibility study in April. We anticipate to start construction by end-2015 or early 2016," Consortium Zenith BUCG chairman Datuk Zarul Ahmad Zulkifli told reporters after the signing of a memorandum of agreement (MoA) between the consortium and Koperasi Staff CIDB (KoCIDB) here yesterday.

The study was originally due for completion in June.

Subsequently, the consortium will embark on a detailed design of the underground tunnel linking Penang island and the mainland as well as three major highway projects that will help ease traffic on the island.

The projects will involve a 12km dual carriageway from Tanjung Bungah to Teluk Bahang, followed by a 5km road and tunnel from Lebuhraya Tun Dr Lim Chong Eu to Ayer Itam and a 4.2km road and tunnel from Lebuhraya Tun Dr Lim Chong Eu to Persiaran Gurney Highway.

The final phase of the project will be the 7.2km Penang-Butterworth link, of which 6.5km will be the undersea tunnel.

Zarul said construction of the mega project will only begin after the consortium has obtained the Penang government's approval for the detailed environmental impact assessment on the project.

As part of preparations for the construction process, the consortium's MoA with KoCIDB is to supply and manage workers for the project. KoCIDB is a society under the Construction Industry Development Board.

While the value of the package was not disclosed, KoCIDB chairman Dr Rohaizi Mohd Jusoh said such labour supply and management packages usually cost about 25% of the total project value.

Based on the RM6.3 billion value pegged for the entire undersea tunnel plus major roads, the management package could be worth RM1.58 billion.

For starters KoCIDB will begin construction of the first Integrated Construction Workers Complex (ICWC) estimated to cost between RM10 million and RM15 million, by the first quarter of 2015.

We need the ICWC to be completed before we start construction [of the undersea tunnel project]," said Zarul.

The complex will span 14,164 sq m and will cater to a full range of amenities such as cafeteria, sports centre, clinic and supermarket for a 2,000-strong workforce.

Consortium Zenith BUCG, a special purpose vehicle established in July 2012, is a partnership between Zenith Construction Sdn Bhd, Sri Tinggi Sdn Bhd, Justeras Sdn Bhd, and two China state-owned conglomerates Beijing Urban Construction Group and China Railway Construction Corp.

Consortium Zenith is currently undertaking the study and detailed design works concurrently with the environmental impact assessment, he told a media briefing after the signing of a memorandum of agreement (MOA) today with Koperasi Staff CIDB (KoCIDB).

KoCIDB is a cooperative under the Construction Industry Development Board, a statutory body established by the federal government.The MOA is for labour supply and a management package worth RM200 million to build the first local integrated construction workers' complex in Penang to house 2,000 workers who will be involved in the construction of the 6.5Km undersea tunnel project.

Construction of the complex is to begin by the first quarter of next year. - Bernama.

Zenith PMC Sdn Bhd, a unit of Zenith Construction, signed a joint-venture agreement with Astral Supreme Construction Sdn Bhd in September 2013 to carry out a feasibility study, design and environmental impact assessment (EIA) for the undersea tunnel.

"We should be able to complete the feasibility studies in April. At the moment, we're ahead of time. We're supposed to complete the feasibility studies by June but we're now bringing it forward," he told reporters after the signing a memorandum of agreement with Koperasi Staff CIDB Malaysia Bhd (KoCIDB) here yesterday.

He added that after the completion of the feasibility studies, it will also need to undertake the detailed design works.

"Things are still not defined until we complete the feasibility studies," Zarul added.

When asked if the undersea tunnel project is going to exceed its budget, he said it is a business risk that the company has to take but is being managed.

"Even if it (costs) overshoots, it would be the businessman's problem and not the state's problem. The state has capped it at RM6.3 billion, and we have to work within the RM6.3 billion," said Zarul, who remained mum on the financing of the RM6.3 billion project.

Consortium Zenith was awarded the contract for the mammoth project by the state government in March 2013. A contract to seal the deal however was only signed in October 2013 after protests from the public brought into question the viability of the project.

Earlier, Consortium Zenith signed a memorandum of agreement with KoCIDB for a labour supply and management package, estimated at some RM200 million, for the construction of the Penang undersea tunnel infrastructure project and major roads.

It is expected to start construction of the first local Integrated Construction Workers Complex (ICWC) by the first quarter of 2015, which will accommodate for an estimated 2,000 workers who will be involved in the construction of the 6.5km George Town-Butterworth undersea tunnel project.

Zarul said the construction of the complex is to be completed by end of 2015 or early 2016. The construction of the first phase of ICWC is estimated at RM10 million to RM15 million.

"ICWC will be working hand in hand with a consortium of KoCIDB which is financially sound and has the experience at building complexes of similar kind in the country," he said.

The complex is spread across a land area of 14,164 sq meters in Penang. It will provide a full range of amenities including housing, business conference centres, cafeteria, sports centre, recreational facilities, mosque, clinic and supermarket.

He said this is the first time KoCIDB, a society under the Construction Industry Development Board (CIDB), is participating in the supply of workers to a construction company and hopes this will be a template for other companies to follow.

KoCIDB has credentials and experience in recruiting and training certified labour for the construction industry. It has the resources, expertise, efficient systems and capacity to recruit and manage labour, and coordinate work permit, medical and insurance requirements.

GEORGE TOWN (October 07): Three expressways to ease traffic flow in the state will be completed before the 6.5km undersea tunnel is ready.

This was revealed by Chief Minister Lim Guan Eng after the signing of a preliminary agreement for the construction of a few major traffic-related projects yesterday.

Under the state's comprehensive package of traffic management projects totalling RM6.3bil, the 12km Tanjung Bungah-Teluk Bahang paired road is scheduled to be ready by 2018, followed by the 4.6km bypass connecting the Tun Dr Lim Chong Eu expressway with Bandar Baru Air Itam by 2019, and the 4.2km bypass connecting Gurney Drive to Tun Dr Lim Chong Eu Expressway in 2022.

The tunnel connecting Gurney Drive and Butterworth's Bagan Ajam will be completed by 2025.

Lim said these projects would not only improve Penang's economy, but also benefit all Malaysians.

"Apart from the multiple job opportunities, the contractors are committed in awarding contracts to Malaysians, especially Pe--nangites," he said after inking the agreement with Consortium Zenith BUCG Sdn Bhd, China Railway Construction Corporation Inter-national (CRCC), and Beijing Urban Con-struction Group.

During the ceremony, Zenith also separately signed two agreements with CRCC related to detailed project design, engineering, materials procurement and construction of the tunnel and the three toll-free expressways.

Lim emphasised that although the agreement has been signed, these projects must comply with the recommendations for construction im-pact mitigation following detailed environmental impact assessments (DEIA).

For this, Penang would appoint an independent company to conduct the DEIA on the four projects.

Meanwhile, Lim added that Barisan Nasional must accept Pakatan Rakyat's offer to set up a three-person committee to implement reforms that will stop the abuses highlighted in the annual Auditor-General's Report.

According to him, only a high-powered committee, with the Deputy Prime Minister as chair, as well as the Opposition leader and the Auditor-General, would be able to "put fear into the hearts of those who betray the public trust given to those acting as a custodian of public funds".

GEORGE TOWN (October 07): It is all systems go for Penang's RM6.3 billion integrated road transport project. The preliminary agreement for feasibility studies and detailed design (FSDD) works, which was signed yesterday, marks the beginning of a "long journey" for the state and concessionaire Consortium Zenith BUCG Sdn Bhd.

After much criticism and praise during the proposal stages early this year, the 12-year project marks a "long journey" that Chief Minister Lim Guan Eng hopes will end successfully.

"We have created history ... We hope the sweat and tears preceding the agreement will translate into success in 2025. Whether we fail or succeed, we will rely on Penang's ‘can do' spirit. We may not be here in 2025 but if this project succeeds, we hope our children will remember us," he said.

The concessionaire comprises China's largest government-linked company China Railway Construction Company (CRCC), construction powerhouse Beijing Urban Construction Group (BUCG), Juteras Sdn Bhd and Sri Tinggi Sdn Bhd which have teamed up in a joint-venture with Kuala-Lumpur based Zenith Construction Sdn Bhd to form the consortium led by chairman Datuk Zarul Ahmad Mohd Zulkifli.

It won the tender to build a 12km paired road between Tanjung Bungah and Teluk Bahang, a bypass each between Air Itam and the Tun Dr Lim Chong Eu expressway, and Gurney Drive and Tun Dr Lim Chong Eu expressway, and the 6.5km undersea tunnel connecting the island and the mainland.

The signing of the agreement was delayed till after the general election in May in order to obtain a mandate from voters.

Following the FSDD works for the three road projects, which will be carried out in the next 18 months, a state appointed consultant is expected to conduct a detailed environmental impact assessment (DEIA) on the entire project.

"These projects are subject to full compliance with the DEIA, failing which the FSDD will just end there. Of course we would not go ahead with a project that was found to be non-compliant. The DEIA consultant is answerable to us, therefore we will ensure that the projects are compliant. The fee for the appointment of the consultant has been factored into the project cost," Lim said.

On criticisms that DEIA was allegedly done in favour of the client, he said it was based on hypotheses, adding that the state will ensure the projects are compliant.

Earlier this year, several non-governmental organisations and Penangites had criticised the project, saying it would have a negative impact on the environment.

Lim, who attracted his share of brickbats, said the project would resolve the burgeoning traffic congestion on the island. He said mainlanders in Seberang Perai Utara would also be able enjoy an alternative route to the island via an undersea tunnel instead of the first and second Penang Bridge.

"The undersea tunnel project is not new. It was also proposed by the previous government. As for the roads, Penangites are generally supportive particularly where the bypasses are needed," he said.

Doubts were also raised as there would be no exchange of cash and traffic guarantees but a 44.5ha tract of land in Tanjung Pinang will be given to the consortium as a trade-off.

The consortium will also be allowed to collect toll on the undersea tunnel for 30 years, at a rate similar to the second Penang Bridge.

Lim said the land, that has yet to be reclaimed by Tanjung Pinang landowner Eastern and Oriental Bhd (E&O) based on a previous government deal, is subject to a separate DEIA conducted by E&O.

"It is a freehold land based on an agreement made by the former government. However, any development carried out on the land is subject to state and local authority regulations," he said.

(E&O will reclaim the remaining 299ha of land from Tanjung Tokong to Gurney Drive after the previous government is said to have sold the land at RM1 per sq ft in 1999. It has so far reclaimed and developed 97ha. According to the deal, E&O was required to handover 44.5ha to the state.)

During a press conference after the sigining ceremony, Lim was asked whether building roads is a solution to reduce congestion. He said it is an alternative as improving public transport is a federal matter.

He said the state is "willing" to continue engaging with the public but "still feels" the project is necessary to find a solution to traffic congestion, and the state government will not "sit down and do nothing".

Consortium charman Zarul, who said he put in "blood, sweat and tears" to secure the project and later endured heavy criticism from the public and the media, said: "We will accede to the state's requirements to train local companies and provide jobs in the course of the project so a Malaysian company will one day be able to bid for a tunnel project overseas."

The three agreements for the FSDD with the consortium, and engineering, procurement and construction with CRCC, and BUCG, builder of the "Bird's Nest" Olympic stadium in Beijing, were signed with the state.

GEORGETOWN (March25) - The Penang state government has officially launched the Penang Transport Masterplan.

The state government mooted the masterplan in 2009 to look into an integrated and holistic public transportation and road system involving the whole of Penang, including Seberang Perai.

In May 2011, the state had appointed AJC Planning Consultants Sdn Bhd, Halcrow Consultants Sdn Bhd and Singapore Cruise Centre to study the matter and some RM3.2 million, through the Nothern Corridor Implementation Authority, was funded into the research.

This resulted in the finalised Transport Master Plan Strategy, which comprises several suggestions to be implemented – short term (between now and 2015, medium term (2015-2020) and long term (2020-2030).

Recommendations listed in the masterplan include upgrading of existing highway networks, building new highways, works on the Georgetown Outer Bypass, improving pedestrian and cycling lanes, upgrading ferry services, introducing water taxis and a third sea crossing.

State Local Government Committee chairman Chow Kon Yeow said that with this masterplan, the state's public transportation system can be upgraded and made more efficient.

"It will enable Penangites to utilise public transportation and slowly migrate commuting from using private vehicles to using public transportation," he said.

Chow added that these efforts need to be carried out from now, as such efforts take time to bear fruit.

He said this in his speech during the launch of the masterplan by Penang Chief Minister, Lim Guan Eng.

Lim said that the proposed undersea tunnel, which is part of the RM6.3 billion project comprising of the 6.5km Pesiaran Gurney-Bagam Ajam undersea tunnel, the 4.2km Pesiaran Gurney-Tun Dr Lim Chong Eu Expressway bypass, the 4.6km Tun Dr Lim Chong Eu Expressway-Bandar Baru Air Itam bypass, and a four-lane 12km road linking Tanjung Bungah and Teluk Bahang, is timely to disperse traffic in the northern part of Penang.

"This link will act as a bypass, so that road users do not need to use the Penang Bridge or the Second Penang Bridge to get to the mainland," he said, adding that traffic congestion could be relieved during peak hours as well.

Lim also expressed hope that the masterplan would be able to facilitate achievement of the state's aim of 30% usage of public transportation by 2030.

"We hope that these recommendations can be carried out by all quarters, including the federal government and the Land Public Transportation Commission (SPAD) to make Penang an icon and an exemplary city in the eyes of the world," he added.

Copies of the masterplan can be obtained at the state local government office on Level 56 of Komtar at the price of RM30 each.

KUALA LUMPUR, April 28 — China signed a memorandum of understanding (MoU) with Penang today on the possibility of building three road and tunnel projects in the island state that will alleviate traffic congestion there.

Penang Chief Minister Lim Guan Eng said today that a 6.5km tunnel linking Penang Island to mainland Butterworth is among the proposed projects with the Chinese state-owned contractor that built the iconic National Stadium in Beijing, popularly known as the Bird's Nest due to its design.

"We need to alleviate the traffic congestion as well as to improve links so you'll make the two halves of Penang into one," Lim told reporters today.

He signed the MoU this morning with Beijing Urban Construction Group Co Ltd (BUCG) chairman Liu Longhua. It was witnessed by Prime Minister Datuk Seri Najib Razak and Chinese Premier Wen Jiabao.

BUCG constructed the iconic stadium that hosted the Olympics in 2008, which is now slated to become a shopping and entertainment centre.

The construction conglomerate is one of the top 500 Chinese enterprises and has a total assets value of US$5.3 billion (RM15.9 billion) and an annual turnover of US$5.7 billion.

"This will be a major infrastructure project for Penang," said Lim.

The proposed Penang-Butterworth tunnel, which will be the third link between the island and mainland, stretches from Gurney Drive in the island's northeast to Butterworth on the mainland.

He said the other two proposed road projects are a 4.2km by-pass between Gurney Drive and the Tun Dr Lim Chong Eu Expressway, and a 4.6km by-pass between that expressway and Bandar Baru Air Itam.

The Penang CM declined to reveal the cost of the projects, saying: "I need to get permission before I release the memorandum."

He added that the projects would have to go through an open tender that will be called at least six month at the earliest. "We want other companies to bid for the proposed projects too," Lim told The Malaysian Insider.

Wen, who is on a two-day visit to Malaysia, and Najib witnessed the signing of eight bilateral agreements between the two countries today.

These include mutual recognition of higher education qualifications and strengthening economic and trade co-operation, as well as the MoU with BUCG.